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What I think is fantastic, part sold at 587 thank you very much and now have a holding in a dividend paying company I never owned before mid November with a sub 438p average cost.
Will add to position on falls and am hoping for £7 in 2023.
sounds ok but certainly not great not sure what the market will think.....?
Good luck tomorrow with the trading update £5 or £6 is anyone's guess.
Onwards and upwards.
Thanks Dun48
That's the kind of insight I was looking for
A
Premier Foods sells mix of brands and own label. Brands require high marketing costs. It is also carrying a lot of debts, hence high interest payments. It's pension funds are negative so is contributing to stabilise them. But it now looks as if both these latter costs are falling. If their brand growth is successful, and once debts and pension deficit disappears, they will have higher PBT and share price will rise. If HFG sells its fish at higher margins to supermarkets or overseas, its profitability and share price will recover.
just seen... after sitting pretty at 577 sudenly dropped to 552 559 out of the blue. Assume there was a seller.
flopped?
just flopped on no news?
Due Thursday next week.
I have compared margins for two business that I consider pretty similar, HFG and premier food., over about 5 years.
Gross profit margins for HGF average at about 12%
Gross profit margins for Premier average at about 34%
Operating margins for HFG 2-3% vs Premier 15%.
Operating cash flow is very similar, capital expenditure much higher for HFG.
Are margins thin because of capital expenditure, which should drive growth, or is there anything I am missing behind the low margins?
yes HFG is ticking along nicely, easy to see a 6 handle of the share price sometime in 2023. Expect it to rally into the new year towards my target and beyond.
Wish they would stop messing with the wide spreads (unless on the upside) I mean 515/539 at open.
What a loadofguff.
Holding here for recovery and dividends. A gem of a company inko.
Today Rns anouncing the above partnership is in line with the vision in the November Trading update " We have made good progress in ongoing discussions regarding geographic expansion and continue to explore opportunities for growth in our existing markets as we deliver on our strategy of becoming the protein partner of choice" Hopefully it will conribute to a better 2023
Expect this will be a better entry level or for averaging down level if you take a year view and invest as well as for a trade.
petrencf, I agree short term movements can be ignored but we've dropped from a high of 1256p in April to 500p now which is disheartening and also puzzling in terms of its size. I fully agree with you that this a a good company and I bought in today. Hopefully a recovery will start early in 2023.
Archy, It would explain it if HFG wasn't going to invest in that sort of pill
I dont really care about short term movements of the SP. It is a solid business, inflation will drop eventually, and SP should recover. I try to accumulate more if it goes lower.
I'm at a bit of a loss to explain to explain why this is now at a 7 year low.
I can only imagine a new scientifc breakthrough must have been made; one which removes the need for the human body to consume food, with people able to get all the nutrients they need through taking a single pill instead. That would explain it.
If that's not the case, then the market has gone mad and this is a buy/hold with a expected 100% return within 12 months.
This share is getting hammered! I would have thought that a bottom must be close. Anyone else got similar thoughts?
Thanks Mary, I would average down, although I am considering if I could put my money to a better use elsewhere. HFG is now a long-term hold with temporary impaired dividend yield.
The share price is stuck at just over £5. wonder how the management is doing with the passing of inflationary costs on to the retailers.
28-Nov-22 15:45:28 545.00 10,000 Buy* 544.00 545.00 54.50k O
28-Nov-22 15:45:15 545.00 75,000 Buy* 544.00 545.00 408.75k O
28-Nov-22 15:31:19 545.00 7,000 Buy* 544.00 545.00 38.15k O
28-Nov-22 15:31:10 545.00 7,000 Buy* 544.00 545.00 38.15k O
DVO - delighted with the news - this may happen to HFG too - just a matte of waiting.
probably worh averaging down if you are able to?
I bought for £8.50...
What I mean is that my feeling is that this will recover within 3 months to above £6.
I have invested and will hope to exit at a higher level in 3 months time. It may come sooner and I will trade the moves to average down towards £3-£4 range holding.
I buy in 2/3000 blocks and sometimes the price spikes at 8am give an opportunity to reduce and buy back later. eg I sold 3k at 569.20 on the 18th and 2k away at 577.47 on the 15th that I rebout sub 534 today. Currently holding 9k shares with a below 520 average cost so working my way down as I try to do. All in an ISA.
Should it go down sub £5 I will add in tranches as it is hard to time the bottom perfectly. It works and am content to hold until the stock turns around.